Freddie Mac's $966 million STACR 2014-DN2 deal, its second offering of STACR notes this year, is being pre-marketed this week, according to an Interactive Data Report.

The securities are unsecured obligations of the government sponsored enterprise; yet their principal repayment is based on the prepayments and defaults on a reference pool of more than $20 billion of residential mortgages acquired by Freddie in the third quarter of 2012. They provide a form of credit enhancement to Freddie, assuming some, but not all, of the risk of the underlying loans.

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